Financial Performance - Net income for Q3 2024 was $26,543,000, up from $19,659,000 in Q3 2023, marking a significant increase of 35.1%[8] - Net interest income for Q3 2024 reached $71,305,000, compared to $64,825,000 in Q3 2023, reflecting a 10.5% increase[8] - Total interest income for Q3 2024 was $101,546,000, an increase from $90,785,000 in Q3 2023, representing a year-over-year growth of 11.4%[8] - Noninterest income totaled $16,813,000 in Q3 2024, down from $18,346,000 in Q3 2023, indicating a decrease of 8.3%[8] - Total noninterest expense for Q3 2024 was $48,609,000, slightly lower than $49,634,000 in Q3 2023, showing a decrease of 2.1%[8] - The company expects continued growth in net interest income and net income for the upcoming quarters, driven by strategic market expansions and new product offerings[19] Asset and Liability Management - Total assets as of September 30, 2024, increased to $6,692,470, up from $6,386,475 a year ago, representing a growth of 4.8%[3] - The total liabilities increased to $5,712,765 from $5,493,075 year-over-year, representing a growth of 4%[3] - Total deposits reached $5,101,696, a slight increase from $5,069,047 in the previous quarter, marking a growth of 0.3%[3] - Total interest-earning assets increased to $6,312,419, up from $5,954,537 in the same period last year, representing a growth of 6%[7] - Total interest-bearing liabilities rose to $4,281,727, compared to $3,508,458, representing an increase of 22%[7] Credit Quality - The allowance for credit losses on loans improved to $(82,158) from $(108,702) year-over-year, reflecting a decrease of 24.5%[3] - The allowance for credit losses increased to $81,567 from $73,438, reflecting a rise of approximately 11%[7] - Total nonperforming assets decreased to $20,757,000 from $21,806,000 in the previous quarter, representing a decline of 4.8%[13] - Nonperforming loans to total loans ratio improved to 0.37% from 0.39% in the previous quarter[13] - The allowance for credit losses to total loans ratio was 1.55%, slightly up from 1.53% in the previous quarter[13] Shareholder Metrics - Stockholders' equity rose to $979,705, up from $893,400 a year ago, showing an increase of 9.7%[3] - Book value per share rose to $50.39 from $49.19 in the previous quarter, reflecting a strong increase in shareholder equity[10] - Basic EPS for Class A Common Stock increased to $1.37 from $1.31 in the previous quarter, and $4.25 for the nine months ended September 30, 2024[10] - The efficiency ratio improved to 55% from 57% in the previous quarter, indicating better operational efficiency[10] - Tangible stockholders' equity increased to $930,065 thousand as of September 30, 2024, compared to $842,598 thousand a year earlier, marking a growth of 10.36%[25] Loan Portfolio - The company reported a net loan balance of $5,214,759, an increase from $5,006,523 a year ago, reflecting a growth of 4.1%[3] - Total loans for the company reached $5,296,917, an increase from $5,264,270 in the previous quarter, representing a growth of 0.62%[12] - Traditional banking loans amounted to $4,566,896, slightly down from $4,589,167, reflecting a decrease of 0.49%[12] - Warehouse lines of credit increased to $595,163, a growth of 8.67% from $549,011 in the previous quarter[12] - The total core banking loans reached $5,162,059, an increase from $5,138,178, representing a growth of 0.47%[12] Operational Highlights - The number of full-service banking centers remained stable at 47, maintaining the company's market presence[10] - The total number of full-time equivalent employees (FTEs) decreased to 992 from 999 in the previous quarter, indicating a slight reduction in workforce[10] - The Republic Processing Group (RPG) includes Tax Refund Solutions, Republic Payment Solutions, and Republic Credit Solutions, which collectively drive revenue through various financial products[15] - Traditional Banking segment focuses on providing loans, investments, and deposits primarily through banking centers and digital channels[16] - Warehouse Lending segment provides short-term credit facilities to mortgage bankers across the United States, contributing to revenue through mortgage warehouse lines of credit[16]

Company Structure and Operations - The Company dissolved its wholly owned insurance subsidiary, Republic Insurance Services, Inc., during Q4 2023[202]. - As of June 30, 2024, the Company operates 47 banking centers primarily in Kentucky, with a focus on traditional banking products[214]. - The Bank's retail mortgage lending includes single-family residential real estate loans and HELOCs, with collateral predominantly located in its market footprint[214]. - The Bank's commercial lending activities are conducted through various channels, including Corporate Banking and Retail Banking, primarily serving clients within its market footprint[220]. - The Company has an acquisition strategy to selectively grow its franchise alongside organic growth strategies[224]. - The Bank's mortgage banking activities involve originating and selling fixed-term residential real estate loans into the secondary market, primarily to FHLMC and FNMA[215]. - The Bank's consumer lending includes home improvement loans and credit cards, although not actively promoted in its markets[221]. - The Bank's Treasury Management Services offer various deposit products and cash management solutions to commercial clients[222]. - The Bank began acquiring single-family, first-lien mortgage loans through its Correspondent Lending channel in Q1 2023, purchasing loans primarily at a premium[223]. - The Bank's Internet and Mobile Banking services enhance market penetration and client account management capabilities[224]. Financial Performance - Total Company net income for Q2 2024 was $25.2 million, an increase of $4.2 million or 20% compared to Q2 2023[243]. - Diluted EPS increased to $1.30 for Q2 2024, up from $1.07 in Q2 2023, reflecting a growth of 21.5%[243]. - Traditional Banking segment net income rose by $2.6 million, or 24%, from Q2 2023 to Q2 2024[244]. - Warehouse Lending segment net income increased by $262,000, or 23%, from Q2 2023 to Q2 2024[247]. - Tax Refund Solutions segment net income grew by $909,000, or 42%, from Q2 2023 to Q2 2024[248]. - Total Company net interest income was $68.5 million during Q2 2024, an increase of $4.0 million, or 6%, from Q2 2023[256]. - Total Company net income for the first six months of 2024 was $55.8 million, a $6.7 million, or 14%, increase from the same period in 2023[298]. - Diluted EPS increased to $2.87 for the first six months of 2024, up from $2.50 for the same period in 2023[298]. Income and Expense Analysis - Noninterest income in the Traditional Banking segment decreased by $1.2 million, or 11%, from Q2 2023 to Q2 2024[244]. - Noninterest income in the Tax Refund Solutions segment decreased by $720,000, or 16%, from Q2 2023 to Q2 2024[248]. - Noninterest expense in the Tax Refund Solutions segment was $2.0 million for Q2 2024, down from $2.2 million in Q2 2023[248]. - Republic Payment Solutions segment net income decreased by $759,000, and net interest income decreased by $1.0 million from Q2 2023 to Q2 2024[249]. - Republic Credit Solutions segment net income increased by $1.1 million, or 29%, and net interest income increased by $2.8 million, or 31%, from Q2 2023 to Q2 2024[250]. - Total Company noninterest income decreased by $613,000 during the first six months of 2024 compared to the same period in 2023, with Traditional Banking's noninterest income decreasing by $1.4 million, or 7%[353]. - Noninterest expense at the RCS segment increased by $1.0 million, or 36%, in Q2 2024, primarily due to higher servicing costs and marketing expenses[298]. Loan and Credit Quality - The net charge to the Provision for the second quarter of 2024 was $5.1 million, a decrease from $6.1 million in the same period of 2023, indicating improved credit quality[276]. - The Traditional Banking segment recorded a net charge of $915,000 in the second quarter of 2024, compared to a net credit of $1.9 million in the same period of 2023, driven by changes in loan mix[276]. - The Allowance for Credit Losses (ACLL) for Traditional Banking was 1.30% as of June 30, 2024, slightly up from 1.26% as of June 30, 2023, indicating stable asset quality[278]. - Total Company net charge-offs increased from 2.37% in Q2 2023 to 2.52% in Q2 2024, with net charge-offs rising by $4.5 million, or 16%[288]. - The incurred loss rate for RAs as of June 30, 2024, was 3.72% of the $874 million total loans originated during the first quarter 2024 tax filing season[282]. - RCS recorded a net charge to the Provision of $5.2 million in Q2 2024, compared to $4.3 million in Q2 2023, representing a 21% increase[283]. - The ACLL for RCS was 15.44% as of June 30, 2024, up from 12.88% as of June 30, 2023[284]. - The total balance of classified and special mention loans decreased by approximately $1.2 million during the first half of 2024[380]. - The total balance of nonperforming loans remained stable at 0.39% of total loans for both June 30, 2024, and December 31, 2023[383]. Deposits and Funding - Total Traditional Bank deposits increased by $202 million to $4.6 billion as of June 30, 2024[299]. - The weighted-average cost of total interest-bearing deposits increased from 1.17% in the first six months of 2023 to 2.74% in the first six months of 2024, with average interest-bearing deposits rising by $705 million[320]. - Core Bank deposits increased by $203 million, or 5%, from December 31, 2023, totaling $4,397,007 thousand as of June 30, 2024[395]. - Interest-bearing deposits in the Core Bank rose by $273 million, driven by a $133 million increase in money market accounts and a $75 million increase in transaction deposits[396]. - Noninterest-bearing deposits decreased by $70 million, continuing a downward trend due to rising market interest rates[397]. - The Company expects slower overall growth and a potential continuing decline in noninterest-bearing deposits in the foreseeable future[398]. Market and Economic Conditions - Management anticipates potential net interest margin compression in the second half of 2024 due to shifts in deposit types and rising borrowing costs[321]. - The company believes its reserves are adequate to absorb expected losses on all nonperforming loans as of June 30, 2024[388]. - The increase in Core Bank deposits was primarily driven by higher interest rates making interest-bearing accounts more attractive to clients[397].

Financial Performance - Total assets as of June 30, 2024, were $6,616,574, an increase of $21,683 from December 31, 2023, and an increase of $246,795 from June 30, 2023[3]. - Total assets increased to $6,706,884,000 in Q2 2024, compared to $6,157,425,000 in Q2 2023, marking a growth of 8.9%[10]. - Net income for Q2 2024 was $25,206,000, an increase of 19.4% from $21,052,000 in Q2 2023[10]. - Net income for the first half of 2024 was $55,812,000, up from $49,144,000 in the first half of 2023, reflecting an increase of approximately 13.6%[21]. - Total noninterest income for Q2 2024 totaled $18,346,000, a decrease from $19,651,000 in Q2 2023[10]. - Total noninterest expense for Q2 2024 was $49,634,000, down from $51,533,000 in Q2 2023, reflecting a decrease of 3.7%[10]. - The efficiency ratio for the second quarter of 2024 was reported at 57%, compared to 42% in the previous quarter, indicating a significant increase in operational efficiency[28]. Loans and Credit Quality - Loans increased to $5,264,270 as of June 30, 2024, up by $24,409 from March 31, 2024, and up by $211,128 from June 30, 2023[3]. - The average balance of loans, including loans held for sale, was $5,262,719 for the three months ended June 30, 2024, a decrease of $191,625 from the previous quarter[4]. - The allowance for credit losses on loans was $80,687 as of June 30, 2024, a decrease of $1,443 from December 31, 2023, and an increase of $8,485 from June 30, 2023[3]. - Total nonperforming loans increased to $20,541, up from $17,504 a year ago, representing a 17.3% increase[14]. - Delinquent loans in the Core Bank segment rose to $9,313, a 59.5% increase from $5,875 a year ago[14]. - The allowance for credit losses to total loans ratio decreased to 1.53% from 2.08% in the previous quarter, indicating improved credit quality[14]. Stockholders' Equity and Book Value - Stockholders' equity increased to $955,423 as of June 30, 2024, up by $42,667 from March 31, 2024, and up by $68,452 from June 30, 2023[3]. - Book value per share increased to $49.19, up $3.95 or 8.8% compared to $45.24 a year ago[12]. - Total stockholders' equity under GAAP increased to $955.423 million as of June 30, 2024, compared to $886.971 million a year earlier[27]. - Tangible stockholders' equity was reported at $905.690 million, reflecting a year-over-year increase from $835.747 million[27]. Interest Income and Margin - Total interest income for Q2 2024 was $97,700,000, an increase of 23.4% compared to $79,054,000 in Q2 2023[10]. - Net interest income for Q2 2024 reached $68,536,000, up from $64,529,000 in Q2 2023, reflecting a growth of 6.2%[10]. - The net interest margin for Q2 2024 was 4.36%, slightly down from 4.46% in Q2 2023[10]. - The yield on average interest-earning assets decreased to 6.21% from 7.91% in the previous quarter, a decline of 21.5%[12]. Operational Metrics - The number of full-time employees (FTEs) decreased to 999 from 1,011 in the previous quarter, a reduction of 1.2%[12]. - The company maintains a diversified operational structure with five reportable segments, enhancing its market reach and revenue generation capabilities[16]. - The Core Banking operations, which include Traditional Banking and Warehouse Lending, are critical for the company's overall performance and stability[17]. - The company continues to focus on improving credit quality metrics while expanding its product offerings in the consumer credit space[17].

Company Structure and Operations - The Company dissolved its wholly owned insurance subsidiary, Republic Insurance Services, Inc., during the last quarter of 2023[197]. - The Company operates through five reportable segments: Traditional Banking, Warehouse Lending, TRS, RPS, and RCS[211]. - The Traditional Banking segment includes 47 banking centers located primarily in Kentucky[213]. - The Bank's principal lending activities include retail mortgage lending, commercial lending, and consumer lending[220]. - The Bank's Correspondent Lending channel began acquiring single-family, first-lien mortgage loans for investment in Q1 2023[226]. - The Bank's Internet and Mobile Banking services enhance market penetration and service delivery[227]. - The Company maintains an acquisition strategy to selectively grow its franchise alongside organic growth strategies[228]. Financial Performance - Total net income for Q1 2024 was $30.6 million, a 9% increase from Q1 2023, with diluted EPS rising to $1.58 from $1.42[251]. - Net interest income decreased by $1.9 million, or 4%, in Q1 2024 compared to Q1 2023[254]. - Noninterest income decreased by $175,000, or 2%, for Q1 2024 compared to the same period in 2023[255]. - Noninterest expense decreased by $2.0 million, or 5%, for Q1 2024 compared to Q1 2023[255]. - Net income increased by $67,000, or 9%, for Q1 2024 compared to the same period in 2023[260]. - Net interest income increased by $3.4 million, or 39%, to $12.0 million for Q1 2024 compared to Q1 2023[265]. - Total Company net interest income was $96.9 million during Q1 2024, an increase of $4.3 million, or 5%, from Q1 2023[269]. Credit Losses and Provisions - As of March 31, 2024, the Company maintained an Allowance for Credit Losses (ACLL) for expected credit losses inherent in its loan portfolio[206]. - The provision for credit losses was a net charge of $358,000 in Q1 2024, down from $3.0 million in Q1 2023[254]. - The Traditional Banking segment's Allowance for Credit Losses (ACLL) was 1.29% of total loans as of March 31, 2024, slightly down from 1.33% as of March 31, 2023[288]. - The total provision for loan losses increased to $30,622,000 in Q1 2024 from $26,766,000 in Q1 2023[300]. - The ACLL (Allowance for Credit Losses) at the end of the period increased to $108,702,000 in Q1 2024 from $96,121,000 in Q1 2023[300]. Loan and Deposit Trends - Total Traditional Bank loans decreased by $45 million, or 1%, during Q1 2024[260]. - Total Traditional Bank deposits increased by $444 million, or 10%, during Q1 2024[260]. - Total loans decreased by $16 million, or less than 1%, to $5.2 billion as of March 31, 2024[323]. - Tax Refund Solutions loans decreased by $92 million, reflecting substantial paydowns of loans originated in December 2023[327]. - Total deposits increased by $367 million to $5.4 billion as of March 31, 2024, representing a 7% increase from December 31, 2023[355]. - Core Bank deposits rose by $445 million, or 10%, with interest-bearing deposits increasing by $505 million and noninterest-bearing deposits decreasing by $59 million[355]. Asset Quality and Nonperforming Loans - Nonperforming loans to total loans for the RCS segment was 1.63% as of March 31, 2024, compared to 1.11% as of December 31, 2023[265]. - Total classified and special mention loans increased by $5.6 million, or 8%, driven primarily by commercial loan downgrades[335]. - The total balance of nonperforming assets increased to $22.9 million, up from $22.0 million at December 31, 2023[341]. - Total nonperforming loans increased to $21,374 thousand as of March 31, 2024, up from $20,618 thousand on December 31, 2023, representing a 3.67% increase[343]. - The percentage of total nonperforming loans to total loans rose to 0.41% as of March 31, 2024, compared to 0.39% as of December 31, 2023[343]. Interest Rate and Capital Management - The dynamic earnings simulation model projected a 2.1% increase in net interest income under a -400 basis points scenario as of March 31, 2024[385]. - The projected net interest income for the Bank showed a deterioration in down-rate scenarios, with significant declines expected due to higher interest-earning cash balances and revised deposit beta assumptions[386]. - The Company elected to defer the impact of CECL on regulatory capital, which will phase in over five years, affecting capital ratios by approximately 6 basis points[379]. - The interest rate risk is considered significant to the Bank's overall earnings and balance sheet, with ongoing monitoring and management strategies in place[381]. - The Bank's average stockholders' equity to average assets ratio was 12.92% as of March 31, 2024, down from 14.21% at the end of 2023[376].

Financial Performance - Net income for Q1 2024 was $30,606,000, an increase of $2,514,000 or 8.9% compared to Q1 2023[10] - Net income for the first quarter of 2024 was $30.606 million, an increase from $28.092 million in the same period of 2023, representing a growth of 8.9%[20] - Total noninterest income for Q1 2024 was $23,373,000, up from $22,681,000 in Q1 2023, marking a rise of 3.1%[20] - Total interest income for Q1 2024 was $130,632,000, an increase of $30,276,000 or 30.1% compared to Q1 2023[10] - Net interest income for Q1 2024 was $96,919,000, up from $92,642,000 in Q1 2023, reflecting a $4,277,000 increase[10] - Total adjusted income, a non-GAAP measure, rose to $120,292 thousand for the quarter, up 4.1% from $115,322 thousand year-over-year[26] Assets and Liabilities - Total assets increased by $280,701 thousand from December 31, 2023, to $6,875,592 thousand, and by $801,501 thousand from March 31, 2023[4] - Total assets grew to $7,219,572,000 in Q1 2024, compared to $6,213,041,000 in Q1 2023, marking a year-over-year increase of 16.2%[10] - Total deposits grew by $367,486 thousand from December 31, 2023, to $5,420,649 thousand, and by $620,981 thousand from March 31, 2023[4] - Total interest-bearing liabilities rose to $4,643,647 thousand, an increase of $1,532,294 thousand compared to the same period last year[5] - The average balance of interest-earning assets increased to $6,641,448,000 in Q1 2024 from $5,679,926,000 in Q1 2023, reflecting a growth of 16.9%[10] Loans and Credit Losses - Total loans for the company decreased to $5,224,292, down $15,569 from the previous quarter and up $450,058 from the same quarter last year[13] - The allowance for credit losses on loans increased by $26,572 thousand from December 31, 2023, to $108,702 thousand, and by $12,581 thousand from March 31, 2023[4] - Provision for credit losses increased to $30,622,000 in Q1 2024 from $26,766,000 in Q1 2023, representing a $3,856,000 increase[10] - The allowance for credit losses to total loans ratio increased to 2.08% from 1.57% as of March 31, 2023, reflecting a rise of 0.51 percentage points[15] - The company reported a decrease in automobile loans to $2,054, down $610 from the previous quarter and down $3,213 year-over-year[13] Stockholders' Equity - Stockholders' equity increased by $22,827 thousand from December 31, 2023, to $935,583 thousand, and by $53,381 thousand from March 31, 2023[4] - Total stockholders' equity increased to $935,583 thousand as of March 31, 2024, up from $882,202 thousand a year earlier, representing a growth of 6.04%[25] - Tangible stockholders' equity reached $885,663 thousand as of March 31, 2024, up from $829,365 thousand a year earlier, marking a growth of 6.8%[25] - Book value per share rose to $48.20, an increase of $3.55 or 7.95% from $44.65 a year ago[12] Efficiency and Ratios - The efficiency ratio improved to 42% from 44% year-over-year, indicating better operational efficiency[12] - The net interest margin decreased to 5.87% in Q1 2024 from 6.52% in Q1 2023[10] - The net interest margin for Q1 2024 was 5.87%, down from 6.52% in Q1 2023, reflecting a decrease of 10%[20] - Return on average assets improved to 1.70% compared to 1.81% in the previous year, reflecting a decrease of 0.11%[12] Employee and Operational Metrics - Total employees at the end of the period decreased to 1,011, down by 20 from 1,031 a year ago[12] - Number of full-service banking centers increased to 47, up by 3 from 44 a year ago[12] Nonperforming Assets - As of March 31, 2024, total nonperforming assets increased to $22,859,000 from $18,139,000 a year earlier, representing a change of $4,720,000 or 26.0%[15] - Total nonperforming loans rose to $21,374,000, up from $16,610,000, marking an increase of $4,764,000 or 28.7% year-over-year[15] - The ratio of nonperforming loans to total loans was 0.41% as of March 31, 2024, compared to 0.35% a year earlier, reflecting an increase of 0.06 percentage points[15]

Financial Overview - As of December 31, 2023, Republic Bancorp, Inc. had total assets of $6.6 billion, total deposits of $5.1 billion, and total stockholders' equity of $913 million[21]. - Republic ranked as the second largest Kentucky-based financial holding company based on total assets as of December 31, 2023[21]. - As of December 31, 2023, the Company had 1,019 full-time equivalent employees, with no employees under collective bargaining agreements[81]. - The Company estimates that 35% of its total deposits as of December 31, 2023, were uninsured, which may increase liquidity risk[168]. Lending Activities - The Bank's principal lending activities include retail mortgage lending, commercial lending, and consumer lending, with a focus on loans secured by owner-occupied residential real estate[26][31][44]. - The targeted credit size for commercial and industrial (C&I) lending relationships is typically between $1 million and $10 million, with larger targets for corporate banking[32]. - The Bank's commercial real estate (CRE) division focuses on large projects typically ranging from $5 million to $25 million, with an emphasis on low credit risk[35]. - The Bank is an SBA Preferred Lending Partner, allowing it to expedite the underwriting and approval of SBA loans up to $3 million[39]. - The Bank's mortgage division includes a Retail Channel and Consumer Direct Channel, originating single-family residential loans and home equity lines of credit (HELOCs)[26]. - Marine lending, initiated in 2023, offers loans ranging from $100,000 to $1,000,000, requiring higher creditworthiness than typical consumer loans[47]. - The Bank's Correspondent Lending channel purchased a block of single-family, first-lien mortgage loans during the second and third quarters of 2023, with premiums amortized into interest income over the expected life of the loans[51]. - The Bank's Private Banking division provides tailored financial products and services to high-net-worth individuals, leveraging extensive banking experience[49]. - The Bank offers two line-of-credit products, LOC I since 2014 and LOC II since January 2021, targeting generally subprime borrowers[77]. - The RCS installment loan product has terms ranging from 12 to 60 months, with all loan balances currently held for sale on the Bank's balance sheet[78]. Business Segments - The Company is divided into six reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS, RPS, and RCS, with the first three considered "Core Banking" operations[24]. - The Republic Payment Solutions segment includes prepaid and debit solutions, with interchange revenue from prepaid card transactions reported as noninterest income[73]. - The Republic Credit Solutions segment focuses on unsecured, small dollar consumer loans, with a significant portion of clients considered subprime or near-prime borrowers[75]. Growth and Expansion - The Company has plans for future growth and expansion, focusing on enhancing its lending capabilities and market presence[17]. - The Bank's acquisition strategy aims to selectively grow its franchise alongside organic growth strategies[53]. Competition and Market Risks - The Bank faces intense competition from various financial institutions, including local and regional banks, credit unions, and fintech companies[86]. - The Bank's competitors may have greater resources and established client bases, leading to potential competitive disadvantages[87]. - The prepaid card industry is experiencing increasing competition from various companies and large retailers integrating financial services[92]. - The small-dollar consumer loan industry is highly competitive, with various competitors including payday lenders and fintech companies[93]. - Recent bank failures have negatively impacted customer confidence in regional banks, increasing competition for deposits and raising funding costs[166]. Regulatory Environment - Regulatory changes, such as the Dodd-Frank Act and the Economic Growth, Regulatory Relief and Consumer Protection Act, impact the Company's operations and regulatory requirements[104]. - The Company is required to obtain prior approval from the FRB for mergers or acquisitions that would result in owning more than 5% of any class of voting shares of a bank[106]. - The Company is classified as a Financial Holding Company (FHC), allowing it to engage in a broader range of financial activities compared to a Bank Holding Company (BHC)[108]. - To maintain FHC status, the Company must remain well-capitalized and well-managed, with a "Satisfactory" rating under the CRA[109]. - The Bank received an "Outstanding" CRA Performance Evaluation in March 2023, indicating strong compliance with community credit needs[127]. - The Company must comply with various federal and state consumer protection laws, including the Fair Credit Reporting Act and the Truth in Lending Act[123]. - The Company is subject to anti-money laundering laws, which require robust compliance programs to avoid significant penalties[121]. - The Company has implemented a comprehensive information security program to safeguard customer information and comply with regulatory requirements[128]. Financial Performance and Risks - The Bank's earnings are significantly influenced by the difference between interest earned on loans and investments and interest paid on deposits[151]. - Future changes in laws and regulations affecting the Company's operations are unpredictable and could impact profitability[155]. - The Company has adopted a Responsible Compensation and Sales Practices Program to comply with interagency guidance on incentive and executive compensation[150]. - Mortgage Banking revenue is expected to continue declining due to low mortgage demand resulting from an elevated interest rate environment[174]. - The Federal Open Market Committee (FOMC) has raised the Federal Funds Target Rate multiple times, contributing to elevated mortgage rates and low refinance activity throughout 2023[171]. - The Company may face increased funding costs if it loses large deposit relationships, as it would need to rely on more expensive funding sources[165]. - The Bank's net interest margin may be adversely affected by an inversion of the interest rate yield curve, which could occur if short-term rates rise above long-term rates[163]. - The Company is subject to significant credit risks associated with Refund Anticipation Loans (RAs) and Earned Refund Anticipation Loans (ERAs), which could materially impact financial results if collection rates decline[176][180]. - The Warehouse Lending business faces risks from intense competition and declining mortgage demand, which could lead to decreased earnings[172]. - The Company has traditionally relied on client deposits, with approximately 6% of deposits concentrated with the top 20 depositors, making it vulnerable to funding disruptions[164]. - Changes in the legal and regulatory environment may necessitate management's revisions to product parameters, potentially impacting performance negatively[183]. - The Bank's loan portfolio is at risk due to potential inaccuracies in borrower information, which could lead to additional charge-offs adversely affecting financial results[190]. - Approximately 34% of the Bank's portfolio is secured by residential real estate and another 34% by commercial real estate, both heavily reliant on third-party appraisals[191]. - The Bank's financial condition could be negatively impacted by environmental liabilities associated with properties it owns or forecloses on[192]. - The Bank's revenues and earnings are highly concentrated in line-of-credit products, and any discontinuation or significant change in these products would materially affect financial results[196]. - The Bank is highly dependent on programs administered by Freddie Mac and Fannie Mae, and changes in these programs could adversely affect its business[199]. - Prepayment of loans by clients may reduce the Bank's interest income, negatively impacting financial results[203]. Cybersecurity and Operational Risks - The Company faces risks related to cybersecurity threats, which could result in substantial costs and negative consequences if successful attacks occur[207]. - The Company relies heavily on third-party service providers, and any difficulties they experience could interrupt operations and adversely impact business[206]. - New lines of business or products may introduce additional risks, and failure to manage these risks could materially affect the Company's financial condition[211]. - The Bank may face goodwill impairment, which could negatively impact earnings if the fair value of a reporting unit falls below its carrying amount[212]. - The annual goodwill impairment test was conducted as of September 30, 2023, and incorrect management judgment could lead to a significant write-down of goodwill[213]. - The Bank's RPG products pose substantial legal and regulatory risks, with potential material negative impacts on earnings if compliance is not maintained[214]. - Non-compliance with statutory and regulatory requirements could expose the Bank to civil penalties and litigation risks, affecting its financial performance[214]. - Regulatory actions or litigation regarding RPG products could necessitate substantial alterations or discontinuation, leading to a material negative impact on earnings[214].

Business Segments and Operations - As of September 30, 2023, Republic Bancorp operates through five reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS, and RCS[233]. - The Bank has 46 banking centers primarily located in Kentucky, with significant operations in Metropolitan Louisville[234]. - The Bank's principal lending activities include retail mortgage lending, commercial lending, and consumer lending, with loans ranging from $200,000 to $4,000,000 for aircraft loans[235][242]. - The Bank's mortgage banking activities involve originating and selling single-family, first-lien residential real estate loans into the secondary market, primarily to FHLMC and FNMA[250]. - The Bank's acquisition strategy aims to selectively grow its franchise alongside organic growth strategies[247]. - The Company plans to dissolve its insurance subsidiary, Republic Insurance Services, Inc., with the dissolution expected in Q4 2023[218]. Financial Performance - Total net income for Q3 2023 was $21.6 million, an increase of $1.7 million compared to Q3 2022[271]. - Diluted EPS rose to $1.10 in Q3 2023 from $1.01 in Q3 2022[271]. - Net income increased by $2.6 million, or 276%, for Q3 2023 compared to Q3 2022[282]. - Total Company net income for the first nine months of 2023 was $70.7 million, a decrease of $1.9 million, or 3%, from the same period in 2022[351]. - Net income increased by $10.5 million, or 43%, for the first nine months of 2023 compared to the same period in 2022[353]. Income and Expenses - Net interest income increased by $847,000, or 2%, in Q3 2023 compared to Q3 2022[275]. - Noninterest income grew by $427,000, or 5%, in Q3 2023 compared to the same period in 2022[275]. - Mortgage banking income decreased by $302,000, or 26%, in Q3 2023 compared to Q3 2022[276]. - Noninterest income decreased by $19.2 million for the first nine months of 2023 compared to the same period in 2022[357]. - Noninterest expense for the Company increased by $1.9 million, or 4%, in Q3 2023 compared to Q3 2022[345]. Credit Losses and Provisions - The adequacy of the Allowance for Credit Losses (ACLL) is evaluated monthly, with significant reliance on historical loss rates and economic forecasts[228][230]. - The provision for credit losses was a net charge of $1.6 million in Q3 2023 compared to a net credit of $753,000 in Q3 2022[275]. - The total company provision was a net charge of $36.6 million for the first nine months of 2023, compared to a net charge of $14.5 million for the same period in 2022[391]. - The Traditional Banking segment's provision was a net charge of $6.4 million for the first nine months of 2023, with an allowance for credit losses (ACLL) of 1.27% as of September 30, 2023[392]. Loan and Deposit Growth - Total Traditional Bank loans increased by $642 million, or 17%, during the first nine months of 2023[353]. - Total Traditional Bank deposits increased by $254 million to $4.3 billion as of September 30, 2023[353]. - The Traditional Bank's average loans grew from $3.7 billion with a yield of 4.23% in Q3 2022 to $4.4 billion with a yield of 5.23% in Q3 2023[294]. Warehouse and Mortgage Banking - Average committed Warehouse lines decreased to $1.0 billion in Q3 2023 from $1.3 billion in Q3 2022[275]. - The Warehouse segment's net interest income decreased by $544,000, or 18%, from Q3 2022 to Q3 2023[298]. - The Bank's mortgage warehouse lines of credit provide short-term, revolving credit facilities to mortgage bankers, with loans typically remaining on the line for an average of 15 to 30 days[248]. Economic Conditions and Future Outlook - The Company anticipates potential impacts from inflation and economic conditions on its operations and financial performance[221]. - The incurred loss rate for RAs associated with the 2023 tax filing season was 3.79%, up from 2.87% for the same period in 2022[322]. Tax Refund Solutions (TRS) Performance - The Tax Refund Solutions (TRS) segment recorded a net charge to the Provision of $19.6 million in the first nine months of 2023, up from $7.0 million in the same period of 2022[397]. - TRS's charge to the Provision for Refund Advances (RAs) was $21.6 million, or 2.92% of $737 million in RAs originated during the first nine months of 2022[398]. - Net interest income within the Tax Refund Solutions (TRS) segment increased by $21.5 million from the first nine months of 2022 to the first nine months of 2023, driven by higher income from prepaid card products and tax-related credit products[375].

[Form 10-Q Filing Information](index=1&type=section&id=Form%2010-Q%20Filing%20Information) Details Republic Bancorp, Inc.'s Nasdaq listing, Class A and B Common Stock outstanding as of July 31, 2023 - Republic Bancorp, Inc. is a Kentucky-incorporated registrant, with its Class A Common Stock (RBCAA) registered on The Nasdaq Stock Market[2](index=2&type=chunk)[3](index=3&type=chunk) - Class A Common Stock Outstanding (July 31, 2023) | 17,386,257 shares - Class B Common Stock Outstanding (July 31, 2023) | 2,156,662 shares [Table of Contents](index=2&type=section&id=Table%20of%20Contents) Provides an organized listing of all sections and subsections within the Form 10-Q report [Glossary of Terms](index=3&type=section&id=GLOSSARY%20OF%20TERMS) Defines key financial and operational terms used throughout the report for clarity and understanding [PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) Presents the company's unaudited consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements.) This section presents the unaudited consolidated financial statements, including balance sheets, income statements, comprehensive income, stockholders' equity, and cash flows, along with detailed footnotes explaining accounting policies, acquisitions, investment securities, loans, deposits, and other financial instruments [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS%20(UNAUDITED)) Presents the company's financial position, including assets, liabilities, and equity, as of June 30, 2023, and December 31, 2022 | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $6,369,779 | $5,835,543 | $534,236 | 9.15% | | Total Liabilities | $5,482,808 | $4,978,930 | $503,878 | 10.12% | | Total Stockholders' Equity | $886,971 | $856,613 | $30,358 | 3.54% | [Consolidated Statements of Income](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(UNAUDITED)) Details the company's revenues, expenses, and net income for the three and six months ended June 30, 2023, and 2022 Three Months Ended June 30 | Metric (in thousands) | 2023 | 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Interest Income | $79,054 | $52,902 | $26,152 | 49.43% | | Total Interest Expense | $14,525 | $1,088 | $13,437 | 1235.02% | | Net Interest Income | $64,529 | $51,814 | $12,715 | 24.54% | | Provision for expected credit loss expense | $6,139 | $3,705 | $2,434 | 65.69% | | Total Noninterest Income | $19,651 | $30,569 | $(10,918) | (35.72)% | | Total Noninterest Expense | $51,533 | $47,656 | $3,877 | 8.14% | | Net Income | $21,052 | $24,347 | $(3,295) | (13.53)% | | Basic EPS Class A Common Stock | $1.07 | $1.23 | $(0.16) | (13.01)% | | Diluted EPS Class A Common Stock | $1.07 | $1.22 | $(0.15) | (12.30)% | Six Months Ended June 30 | Metric (in thousands) | 2023 | 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Interest Income | $179,410 | $117,012 | $62,398 | 53.33% | | Total Interest Expense | $22,239 | $2,031 | $20,208 | 995.08% | | Net Interest Income | $157,171 | $114,981 | $42,190 | 36.69% | | Provision for expected credit loss expense | $32,905 | $12,931 | $19,974 | 154.47% | | Total Noninterest Income | $42,332 | $61,578 | $(19,246) | (31.26)% | | Total Noninterest Expense | $103,976 | $96,237 | $7,739 | 8.04% | | Net Income | $49,144 | $52,697 | $(3,553) | (6.74)% | | Basic EPS Class A Common Stock | $2.50 | $2.65 | $(0.15) | (5.66)% | | Diluted EPS Class A Common Stock | $2.50 | $2.64 | $(0.14) | (5.30)% | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(UNAUDITED)) Reports net income and other comprehensive income components for the three and six months ended June 30, 2023, and 2022 Three Months Ended June 30 | Metric (in thousands) | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Net income | $21,052 | $24,347 | $(3,295) | | Total other comprehensive income (loss), net of tax | $(3,294) | $(7,611) | $4,317 | | Comprehensive income | $17,758 | $16,736 | $1,022 | Six Months Ended June 30 | Metric (in thousands) | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Net income | $49,144 | $52,697 | $(3,553) | | Total other comprehensive income (loss), net of tax | $611 | $(23,528) | $24,139 | | Comprehensive income | $49,755 | $29,169 | $20,586 | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%27%20EQUITY%20(UNAUDITED)) Outlines changes in stockholders' equity, including retained earnings and other comprehensive income, for the periods presented | Metric (in thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Stockholders' Equity | $886,971 | $856,613 | | Class A Common Stock Shares Outstanding | 17,449 | 17,585 | | Class B Common Stock Shares Outstanding | 2,157 | 2,160 | | Retained Earnings | $771,260 | $742,250 | | Accumulated Other Comprehensive Income (Loss) | $(31,368) | $(31,979) | - For the six months ended June 30, 2023, the company declared dividends of **$0.748** per Class A share and **$0.680** per Class B share, totaling **$13.118 million** and **$1.467 million**, respectively. The company repurchased **156 thousand** Class A Common Stock shares for **$6.714 million**[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(UNAUDITED)) Summarizes cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2023, and 2022 Six Months Ended June 30 | Activity (in thousands) | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $64,893 | $94,577 | $(29,684) | | Net cash used in investing activities | $(386,026) | $(28,960) | $(357,066) | | Net cash (used in) provided by financing activities | $249,411 | $(27,445) | $276,856 | | Net change in cash and cash equivalents | $(71,722) | $38,172 | $(109,894) | | Cash and cash equivalents at end of period | $241,967 | $795,143 | $(553,176) | [Notes to Consolidated Financial Statements](index=10&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Provides detailed explanations and disclosures supporting the unaudited consolidated financial statements [1. Basis of Presentation and Summary of Significant Accounting Policies](index=10&type=section&id=1.%20BASIS%20OF%20PRESENTATION%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Republic Bancorp operates as a financial holding company with five segments, adopting recent ASUs, and plans to dissolve its insurance subsidiary - Republic Bancorp, Inc. is a financial holding company with five reportable segments: Traditional Banking, Warehouse, Mortgage Banking (Core Bank), and Tax Refund Solutions (TRS), Republic Credit Solutions (RCS) (RPG)[22](index=22&type=chunk)[24](index=24&type=chunk) - The Company's Board of Directors voted in May 2023 to dissolve its insurance subsidiary, Republic Insurance Services, Inc. (Captive), with dissolution expected in the second half of 2023[22](index=22&type=chunk) Recently Adopted Accounting Standards Updates (ASUs) | ASU No. | Topic | Nature of Update | Date Adopted | Financial Statement Impact | | :--- | :--- | :--- | :--- | :--- | | 2022-02 | Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures | Eliminates TDR recognition/measurement guidance; enhances disclosures for modifications to borrowers experiencing financial difficulty | January 1, 2023 | Immaterial | | 2022-06 | Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 | Extends period for reference rate reform relief guidance | January 1, 2023 | Immaterial (Company ceased new/renewing LIBOR-indexed loans Jan 1, 2022) | [2. Acquisition of CBank](index=23&type=section&id=2.%20ACQUISITION%20OF%20CBANK) Republic Bancorp acquired CBank for $51 million in cash to expand its Cincinnati presence, resulting in $24 million goodwill - The Company acquired CBank and its wholly owned bank subsidiary Commercial Industrial Finance (CIF) on March 15, 2023, for approximately **$51 million** in cash[58](index=58&type=chunk) - The primary reason for the acquisition was to expand the Company's footprint in the Cincinnati, Ohio metropolitan statistical area[58](index=58&type=chunk) CBank Acquisition Summary (March 15, 2023, in thousands) | Item | As Recorded by Republic | | :--- | :--- | | Total Assets Acquired | $253,317 | | Total Liabilities Assumed | $226,533 | | Net Assets Acquired | $26,784 | | Cash Consideration Paid | $(51,000) | | Goodwill | $24,216 | [3. Investment Securities](index=25&type=section&id=3.%20INVESTMENT%20SECURITIES) The company's investment portfolio includes AFS and HTM debt securities, with AFS having $43.19 million in unrealized losses as of June 30, 2023 Available-for-Sale Debt Securities (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Amortized Cost | $645,968 | $663,003 | | Fair Value | $604,150 | $620,365 | | Gross Unrealized Gains | $1,373 | $1,437 | | Gross Unrealized Losses | $(43,191) | $(44,075) | Held-to-Maturity Debt Securities (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Amortized Cost | $101,976 | $87,396 | | Fair Value | $101,190 | $87,357 | | Gross Unrecognized Gains | $75 | $160 | | Gross Unrecognized Losses | $(861) | $(199) | Pledged Debt Securities (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Amortized Cost | $97,400 | $236,047 | | Fair Value | $92,450 | $217,562 | [4. Loans Held for Sale](index=31&type=section&id=4.%20LOANS%20HELD%20FOR%20SALE) Consumer loans held for sale increased to $5.76 million at fair value and $15.79 million at lower of cost or fair value as of June 30, 2023 Consumer Loans Held for Sale, at Fair Value (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Balance, end of period | $5,757 | $4,706 | | Metric (Six Months Ended June 30) | 2023 | 2022 | | :--- | :--- | :--- | | Origination of consumer loans held for sale | $52,944 | $195,436 | | Proceeds from the sale of consumer loans held for sale | $(53,449) | $(201,083) | | Net gain on sale of consumer loans held for sale | $1,556 | $3,359 | Consumer Loans Held for Sale, at Lower of Cost or Fair Value (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Balance, end of period | $15,787 | $13,169 | | Metric (Six Months Ended June 30) | 2023 | 2022 | | :--- | :--- | :--- | | Origination of consumer loans held for sale | $416,682 | $332,560 | | Proceeds from the sale of consumer loans held for sale | $(418,051) | $(324,626) | | Net gain on sale of consumer loans held for sale | $3,987 | $2,906 | [5. Loans and Allowance for Credit Losses](index=32&type=section&id=5.%20LOANS%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) Total loans grew to $5.05 billion, ACLL increased to $72.20 million, and nonperforming loans slightly rose to $17.50 million as of June 30, 2023 Loan Portfolio Composition (in thousands) | Segment | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Traditional Banking | $4,394,668 | $3,855,142 | $539,526 | 14.00% | | Warehouse lines of credit | $539,560 | $403,560 | $136,000 | 33.70% | | Republic Processing Group | $118,914 | $257,100 | $(138,186) | (53.75)% | | **Total Loans** | **$5,053,142** | **$4,515,802** | **$537,340** | **11.90%** | | Allowance for Credit Losses | $(72,202) | $(70,413) | $(1,789) | 2.54% | | **Total Loans, net** | **$4,980,940** | **$4,445,389** | **$535,551** | **12.05%** | Allowance for Credit Losses on Loans (ACLL) Roll-forward (Six Months Ended June 30, in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Beginning Balance | $70,413 | $64,577 | | CBank Adjustment | $216 | — | | Provision | $32,905 | $12,898 | | Charge-offs | $(32,638) | $(17,250) | | Recoveries | $1,306 | $4,224 | | Ending Balance | $72,202 | $64,449 | Nonperforming Loans and Assets (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Loans on nonaccrual status | $16,957 | $15,562 | | Loans past due 90-days-or-more and still on accrual | $547 | $756 | | **Total Nonperforming Loans** | **$17,504** | **$16,318** | | Other real estate owned | $1,478 | $1,581 | | **Total Nonperforming Assets** | **$18,982** | **$17,899** | | Nonperforming loans to total loans | 0.35% | 0.36% | | Nonperforming assets to total assets | 0.30% | 0.31% | Delinquent Loans (30-days-or-more past due, in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Delinquent Loans | $15,918 | $15,260 | | Delinquency ratio (Total loans 30-days-or-more past due / Total loans) | 0.32% | 0.34% | Refund Advances (RAs) Performance (Six Months Ended June 30, in thousands) | Metric | 2023 Tax Season | 2022 Tax Season | | :--- | :--- | :--- | | RAs originated during the tax season | $834,552 | $311,207 | | RA net charge-offs recognized | $25,823 | $8,879 | | Provision expense recorded | $25,798 | $8,315 | | RA net losses recognized as % of originations | 3.09% | 2.85% | [6. Deposits](index=50&type=section&id=6.%20DEPOSITS) Total deposits increased to $4.73 billion, driven by the CBank acquisition and growth in interest-bearing deposits, despite a decline in noninterest-bearing deposits Deposit Composition (in thousands) | Segment/Type | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Core Bank Total Deposits | $4,269,758 | $4,089,721 | $180,037 | 4.40% | | Core Bank Noninterest-bearing | $1,405,543 | $1,464,493 | $(58,950) | (4.03)% | | Core Bank Interest-bearing | $2,864,215 | $2,625,228 | $238,987 | 9.10% | | RPG Total Deposits | $459,523 | $448,124 | $11,399 | 2.54% | | **Total Deposits** | **$4,729,281** | **$4,537,845** | **$191,436** | **4.22%** | - The CBank acquisition contributed **$191 million** to Core Bank deposit growth[153](index=153&type=chunk) - Core Bank legacy deposits decreased by **$11 million**, with noninterest-bearing deposits declining by **$110 million** and interest-bearing deposits increasing by **$99 million**[153](index=153&type=chunk) - The increase in Core Bank interest-bearing deposits was primarily in CDARs and ICS product types, which grew by **$184 million** in the first six months of 2023 due to significantly increased offering rates (above **4%**)[153](index=153&type=chunk)[155](index=155&type=chunk) [7. Securities Sold Under Agreements to Repurchase and Other Short-term Borrowings](index=52&type=section&id=7.%20SECURITIES%20SOLD%20UNDER%20AGREEMENTS%20TO%20REPURCHASE%20AND%20OTHER%20SHORT-TERM%20BORROWINGS) SSUARs and other short-term borrowings decreased by $125 million to $92.09 million due to customer relationships and unchanged pricing strategy | Metric | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Outstanding balance at end of period | $92,093 | $216,956 | $(124,863) | (57.55)% | | Weighted average interest rate at end of period | 0.43% | 0.41% | 0.02% | 4.88% | | Fair value of securities pledged | $92,450 | $254,296 | $(161,846) | (63.60)% | - The decrease in SSUARs is primarily due to large customer relationships and the Bank's unchanged pricing strategy for SSUARs, which has not been adjusted to match higher market rates[155](index=155&type=chunk) [8. Right-of-Use Assets and Operating Lease Liabilities](index=53&type=section&id=8.%20RIGHT-OF-USE%20ASSETS%20AND%20OPERATING%20LEASE%20LIABILITIES) The company's operating lease liabilities and right-of-use assets reflect 45 contracts, with total lease expense increasing to $4.00 million for the six months ended June 30, 2023 Total Operating Lease Expense (Six Months Ended June 30, in thousands) | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Total operating lease expense | $4,001 | $3,737 | $264 | Operating Lease Metrics | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Weighted average remaining term in years | 7.96 | 8.44 | | Weighted average discount rate | 2.13% | 2.10% | Operating Lease Liabilities Maturity Schedule (June 30, 2023, in thousands) | Year | Total Undiscounted Cash Flows | | :--- | :--- | | 2023 | $3,245 | | 2024 | $6,173 | | 2025 | $5,412 | | 2026 | $5,131 | | 2027 | $4,840 | | Thereafter | $15,381 | | **Total Undiscounted Cash Flows** | **$40,182** | | Discount applied to cash flows | $(4,461) | | **Total discounted cash flows reported as operating lease liabilities** | **$35,721** | [9. Federal Home Loan Bank Advances](index=55&type=section&id=9.%20FEDERAL%20HOME%20LOAN%20BANK%20ADVANCES) FHLB advances significantly increased to $520 million to fund deposit outflows and loan growth, with available borrowing capacity decreasing to $543 million FHLB Advances (in thousands) | Metric | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Overnight advances | $450,000 | $75,000 | $375,000 | 500.00% | | Fixed interest rate advances | $70,000 | $20,000 | $50,000 | 250.00% | | **Total FHLB advances** | **$520,000** | **$95,000** | **$425,000** | **447.37%** | | Weighted Average Rate (Total) | 4.88% | N/A | N/A | N/A | | Weighted Average Maturity (Total) | 0.68 years | N/A | N/A | N/A | Available Borrowing Capacity (in thousands) | Metric | June 30, 2023 | December 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Available borrowing capacity with the FHLB | $543,000 | $900,000 | $(357,000) | | Unsecured lines of credit | $125,000 | $125,000 | $0 | - The Company has utilized FHLB advances over the past year to fund its deposit outflow and overall loan growth[155](index=155&type=chunk) [10. Off Balance Sheet Risks, Commitments and Contingent Liabilities](index=56&type=section&id=10.%20OFF%20BALANCE%20SHEET%20RISKS%2C%20COMMITMENTS%20AND%20CONTINGENT%20LIABILITIES) Off-balance sheet commitments totaled $2.06 billion, with the Allowance for Credit Losses on Off-Balance Sheet Credit Exposures increasing due to loan mix changes Total Commitments (in thousands) | Metric | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Unused warehouse lines of credit | $440,940 | $733,940 | $(293,000) | (39.92)% | | Unused home equity lines of credit | $430,954 | $410,057 | $20,897 | 5.10% | | Unused loan commitments - other | $1,175,149 | $951,021 | $224,128 | 23.57% | | Standby letters of credit | $10,232 | $9,735 | $497 | 5.10% | | FHLB letter of credit | $233 | $643 | $(410) | (63.76)% | | **Total Commitments** | **$2,057,508** | **$2,105,396** | **$(47,988)** | **(2.28)%** | ACLC Roll-forward (Six Months Ended June 30, in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Beginning Balance | $1,250 | $1,052 | | Provision | $280 | $48 | | Ending Balance | $1,530 | $1,100 | - The Company increased its ACLC during the three and six months ended June 30, 2023, primarily due to a change in the loan mix to loans with higher reserve rates[145](index=145&type=chunk) [11. Fair Value](index=58&type=section&id=11.%20FAIR%20VALUE) Financial instruments are measured at fair value using a three-level hierarchy, with AFS debt securities at $604.15 million and consumer loans held for sale at $5.76 million Fair Value Measurements at June 30, 2023 (in thousands) | Financial Asset/Liability | Level 1 | Level 2 | Level 3 | Total Fair Value | | :--- | :--- | :--- | :--- | :--- | | Available-for-sale debt securities | $174,323 | $424,093 | $5,734 | $604,150 | | Equity securities with readily determinable fair value | — | $122 | — | $122 | | Mortgage loans held for sale | — | $4,038 | — | $4,038 | | Consumer loans held for sale | — | — | $5,757 | $5,757 | | Rate lock loan commitments | — | $189 | — | $189 | | Interest rate swap agreements (assets) | — | $7,829 | — | $7,829 | | Mandatory forward contracts (liabilities) | — | $61 | — | $61 | | Interest rate swap agreements (liabilities) | — | $7,829 | — | $7,829 | Non-Recurring Fair Value Measurements at June 30, 2023 (in thousands) | Financial Asset | Level 1 | Level 2 | Level 3 | Total Fair Value | | :--- | :--- | :--- | :--- | :--- | | Collateral-dependent loans | — | — | $2,049 | $2,049 | | Other real estate owned | — | — | $1,478 | $1,478 | - The fair value of the Bank's single private label mortgage-backed security (**$1.988 million**) and Trust Preferred Security (**$3.746 million**) are measured using significant unobservable inputs (Level 3)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk) [12. Mortgage Banking Activities](index=72&type=section&id=12.%20MORTGAGE%20BANKING%20ACTIVITIES) Mortgage Banking income decreased to $1.71 million due to higher interest rates impacting originations, while MSRs decreased to $7.99 million Mortgage Banking Income (Six Months Ended June 30, in thousands) | Component | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Net gain realized on sale of mortgage loans held for sale | $605 | $5,407 | $(4,802) | | Net change in fair value recognized on loans held for sale | $39 | $(597) | $636 | | Net change in fair value recognized on rate lock loan commitments | $187 | $(1,184) | $1,371 | | Net change in fair value recognized on forward contracts | $128 | $293 | $(165) | | Net servicing income recognized | $748 | $501 | $247 | | **Total Mortgage Banking income** | **$1,707** | **$4,420** | **$(2,713)** | Capitalized Mortgage Servicing Rights (MSRs) Activity (Six Months Ended June 30, in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Balance, beginning of period | $8,769 | $9,196 | | Additions | $200 | $1,459 | | Amortized to expense | $(974) | $(1,248) | | Balance, end of period | $7,995 | $9,407 | - Mortgage Banking derivatives, including mandatory forward sales contracts and interest rate lock loan commitments, are used to manage interest rate risk on loan commitments and mortgage loans held for sale[186](index=186&type=chunk)[188](index=188&type=chunk) - These instruments typically expire within **90 days**[186](index=186&type=chunk)[188](index=188&type=chunk) [13. Interest Rate Swaps](index=76&type=section&id=13.%20INTEREST%20RATE%20SWAPS) The Bank uses non-hedge interest rate swaps with a total notional amount of $286.12 million to facilitate client transactions and manage its own risk Interest Rate Swaps Summary (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Notional Amount | $286,116 | $263,336 | | Total Fair Value | $0 | $0 | | Fair value of cash or investment securities pledged as collateral | $4,900 | $560 | - The Bank enters into interest rate swaps to facilitate client transactions and minimize its own interest rate risk through offsetting positions, with changes in fair value reported in current year earnings as they are not designated as hedging instruments[191](index=191&type=chunk) [14. Earnings Per Share](index=77&type=section&id=14.%20EARNINGS%20PER%20SHARE) Basic and diluted EPS for Class A Common Stock decreased to $2.50 for the six months ended June 30, 2023, calculated using the two-class method Earnings Per Share (Six Months Ended June 30) | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Basic EPS Class A Common Stock | $2.50 | $2.65 | $(0.15) | | Basic EPS Class B Common Stock | $2.27 | $2.41 | $(0.14) | | Diluted EPS Class A Common Stock | $2.50 | $2.64 | $(0.14) | | Diluted EPS Class B Common Stock | $2.27 | $2.40 | $(0.13) | - The difference in earnings per share between Class A and Class B Common Stock results from a **10%** per share cash dividend premium paid on Class A Common Stock[195](index=195&type=chunk) [15. Other Comprehensive Income](index=78&type=section&id=15.%20OTHER%20COMPREHENSIVE%20INCOME) Total OCI, net of tax, was a gain of $611 thousand for the six months ended June 30, 2023, a significant improvement from the prior year's loss Other Comprehensive Income (Six Months Ended June 30, in thousands) | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Unrealized gain (loss) on AFS debt securities | $787 | $(31,382) | $32,169 | | Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings | $33 | $9 | $24 | | Net gains (losses) | $820 | $(31,373) | $32,193 | | Income tax benefit (expense) related to OCI | $(209) | $7,845 | $(8,054) | | **Total other comprehensive income (loss), net of tax** | **$611** | **$(23,528)** | **$24,139** | Accumulated Other Comprehensive Income (Loss) Balances (net of tax, in thousands) | Metric | June 30, 2023 | December 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Total unrealized gain (loss) | $(31,368) | $(31,979) | $611 | [16. Revenue from Contracts with Customers](index=79&type=section&id=16.%20REVENUE%20FROM%20CONTRACTS%20WITH%20CUSTOMERS) Total net revenue increased to $199.50 million, with Core Banking contributing 62%, but non-recurring legal settlement income impacted prior year comparison Total Net Revenue and Concentration by Segment (Six Months Ended June 30, in thousands) | Segment | 2023 Net Revenue | 2023 % Concentration | 2022 Net Revenue | 2022 % Concentration | | :--- | :--- | :--- | :--- | :--- | | Core Banking | $123,397 | 62% | $103,565 | 59% | | Republic Processing Group | $76,106 | 38% | $72,994 | 41% | | **Total Net Revenue** | **$199,503** | **100%** | **$176,559** | **100%** | Key Noninterest Income Components (Six Months Ended June 30, in thousands) | Component | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Service charges on deposit accounts | $6,826 | $6,589 | $237 | | Net refund transfer fees | $15,286 | $16,001 | $(715) | | Mortgage banking income | $1,707 | $4,420 | $(2,713) | | Interchange fee income | $6,470 | $6,531 | $(61) | | Program fees | $6,980 | $7,739 | $(759) | | Death benefits in excess of cash surrender value of life insurance | $1,728 | — | $1,728 | | Contract termination fee | — | $5,000 | $(5,000) | | Legal settlement | — | $13,000 | $(13,000) | - Net refund transfer fees decreased by **$715 thousand** for the first six months of 2023, negatively impacted by a general decline in overall RT demand across the industry[204](index=204&type=chunk)[208](index=208&type=chunk) [17. Segment Information](index=84&type=section&id=17.%20SEGMENT%20INFORMATION) The company operates five reportable segments, with Traditional Banking and RCS showing increased net income for the six months ended June 30, 2023 Net Income by Segment (Six Months Ended June 30, in thousands) | Segment | 2023 Net Income | 2022 Net Income | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Traditional Banking | $22,901 | $11,152 | $11,749 | 105.35% | | Warehouse Lending | $1,893 | $5,478 | $(3,585) | (65.44)% | | Mortgage Banking | $(2,342) | $(519) | $(1,823) | 351.25% | | Tax Refund Solutions | $17,428 | $27,522 | $(10,094) | (36.68)% | | Republic Credit Solutions | $9,264 | $9,064 | $200 | 2.21% | | **Total Company** | **$49,144** | **$52,697** | **$(3,553)** | **(6.74)%** | Primary Drivers of Net Revenue by Reportable Segment | Reportable Segment | Primary Drivers of Net Revenue | | :--- | :--- | | Traditional Banking | Loans, investments, and deposits | | Warehouse Lending | Mortgage warehouse lines of credit | | Mortgage Banking | Loan sales and servicing | | Tax Refund Solutions | Loans, refund transfers, and prepaid cards | | Republic Credit Solutions | Unsecured, consumer loans | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=87&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses financial performance, critical accounting policies, and financial condition for the periods presented [Overview and Forward-Looking Statements](index=87&type=section&id=Overview%20and%20Forward-Looking%20Statements) Republic Bancorp, a financial holding company, provides an overview of its operations and discusses various forward-looking risks - Republic Bancorp, Inc. is a financial holding company headquartered in Louisville, Kentucky, operating through its subsidiary bank and an insurance subsidiary (Captive), which is expected to dissolve in the second half of 2023[225](index=225&type=chunk)[226](index=226&type=chunk) - Forward-looking statements involve known and unknown risks, including the potential impact of inflation, litigation, natural disasters, changes in political and economic conditions, bank failures, LIBOR discontinuation, interest rate fluctuations, and competitive pressures[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk) [Critical Accounting Policies and Estimates](index=89&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) Management identifies the Allowance for Credit Losses on Loans and Provision for Expected Credit Loss Expense as critical accounting policies - Management considers the Allowance for Credit Losses on Loans (ACLL) and Provision for Expected Credit Loss Expense to be critical accounting policies, requiring significant reliance on estimates and judgment regarding historical loss rates, economic factors, and reasonable forecasts[236](index=236&type=chunk)[238](index=238&type=chunk) - Adjustments to historical loss rates for current conditions include underwriting standards, portfolio mix, delinquency levels, and environmental changes like property values[239](index=239&type=chunk) - One-year forecast adjustments are based on unemployment and Commercial Real Estate (CRE) values, with reversion to long-term averages thereafter[239](index=239&type=chunk) [Business Segment Composition](index=91&type=section&id=BUSINESS%20SEGMENT%20COMPOSITION) The company is structured into five reportable segments: Traditional Banking, Warehouse Lending, Mortgage Banking, Tax Refund Solutions, and Republic Credit Solutions - The Company is organized into five reportable segments: Traditional Banking, Warehouse Lending, Mortgage Banking (collectively 'Core Bank'), and Tax Refund Solutions (TRS), Republic Credit Solutions (RCS) (collectively 'Republic Processing Group' or 'RPG')[241](index=241&type=chunk) - Traditional Banking offers retail mortgage, commercial, construction, consumer, and aircraft lending, along with private banking, treasury management, correspondent lending, and internet/mobile banking services, primarily within its market footprint[243](index=243&type=chunk)[244](index=244&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk)[254](index=254&type=chunk) - Warehouse Lending provides short-term, revolving credit facilities to mortgage bankers nationwide, secured by single-family residential real estate loans, with individual loans typically on the line for **15-30 days**[256](index=256&type=chunk)[257](index=257&type=chunk) - Mortgage Banking originates and sells **15-, 20-, and 30-year** fixed-term residential real estate loans into the secondary market, primarily to FHLMC and FNMA, typically retaining servicing rights and recording Mortgage Servicing Rights (MSRs)[258](index=258&type=chunk)[259](index=259&type=chunk) - Tax Refund Solutions (TRS) facilitates federal and state tax refund products (Refund Transfers, Refund Advances, Early Season Refund Advances) and operates the Republic Payment Solutions (RPS) division, offering prepaid cards and payroll debit cards[261](index=261&type=chunk)[262](index=262&type=chunk)[264](index=264&type=chunk)[272](index=272&type=chunk) - Republic Credit Solutions (RCS) offers unsecured, small-dollar consumer credit products, including line-of-credit products (LOC I, LOC II), installment loans, and healthcare receivables products, primarily to subprime or near-prime borrowers outside the Bank's market footprint[273](index=273&type=chunk)[275](index=275&type=chunk)[277](index=277&type=chunk)[280](index=280&type=chunk) [Results of Operations (Q2 2023 vs. Q2 2022)](index=101&type=section&id=Results%20of%20Operations%20(Q2%202023%20vs.%20Q2%202022)) Net income decreased by $3.3 million, or 13.5%, driven by lower noninterest income and higher provision for credit losses, despite increased net interest income [Overall Company Performance](index=101&type=section&id=Overall%20Company%20Performance%20(Q2)) Total company net income decreased by $3.3 million, or 13.53%, for the three months ended June 30, 2023 Net Income and Diluted EPS (Three Months Ended June 30) | Metric | 2023 | 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Income (in thousands) | $21,052 | $24,347 | $(3,295) | (13.53)% | | Diluted EPS Class A Common Stock | $1.07 | $1.22 | $(0.15) | (12.30)% | - Traditional Banking net income increased by **$5.3 million** (**78%**), while Warehouse net income decreased by **$1.3 million** (**53%**)[281](index=281&type=chunk)[282](index=282&type=chunk) - Mortgage Banking income decreased by **$856 thousand** (**49%**), and Tax Refund Solutions net income decreased by **$7.1 million** (**59%**)[284](index=284&type=chunk)[285](index=285&type=chunk) - Republic Credit Solutions net income increased by **$189 thousand** (**5%**)[286](index=286&type=chunk) [Net Interest Income](index=103&type=section&id=Net%20Interest%20Income%20(Q2)) Total company net interest income increased by $12.7 million, or 24.54%, with NIM expanding to 4.46% for Q2 2023 Net Interest Income and Margin (Three Months Ended June 30) | Metric | 2023 (in thousands) | 2022 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Company Net Interest Income | $64,529 | $51,814 | $12,715 | 24.54% | | Total Company Net Interest Margin (NIM) | 4.46% | 3.55% | 0.91% | 25.63% | | Traditional Banking Net Interest Income | $48,682 | $39,158 | $9,524 | 24.32% | | Traditional Banking NIM | 3.77% | 3.06% | 0.71% | 23.20% | | Warehouse Net Interest Income | $2,642 | $3,886 | $(1,244) | (32.01)% | | Warehouse NIM | 2.28% | 2.69% | (0.41)% | (15.24)% | | TRS Net Interest Income | $4,010 | $1,638 | $2,372 | 144.81% | | RCS Net Interest Income | $9,134 | $6,979 | $2,155 | 30.88% | - Traditional Banking's net interest income and NIM increased due to higher loan yields outpacing increased cost of interest-bearing liabilities, driven by loan growth and the CBank acquisition[293](index=293&type=chunk)[296](index=296&type=chunk)[297](index=297&type=chunk) - However, declining noninterest-bearing deposits and rising FHLB borrowings are expected to cause future NIM compression[293](index=293&type=chunk)[296](index=296&type=chunk)[297](index=297&type=chunk) - Warehouse net interest income and NIM decreased due to lower average outstanding balances (driven by reduced mortgage refinancing) and funding costs rising faster than yields, as interest rate floors on client lines of credit were surpassed[299](index=299&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk) - TRS net interest income increased, primarily from higher FTP crediting rates on prepaid card balances[305](index=305&type=chunk)[306](index=306&type=chunk)[307](index=307&type=chunk) - RCS net interest income increased due to higher fee income from its LOC II product, with customer demand not assumed to be interest rate sensitive[308](index=308&type=chunk)[309](index=309&type=chunk) [Provision for Expected Credit Loss Expense](index=112&type=section&id=Provision%20for%20expected%20credit%20loss%20expense%20(Q2)) Total company provision for expected credit loss expense increased by $2.4 million, or 65.69%, for the three months ended June 30, 2023 Provision for Expected Credit Loss Expense (Three Months Ended June 30, in thousands) | Segment | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Traditional Banking | $1,860 | $146 | $1,714 | | Warehouse | $202 | $(234) | $436 | | Tax Refund Solutions | $(219) | $360 | $(579) | | Republic Credit Solutions | $4,296 | $3,433 | $863 | | **Total Company Provision** | **$6,139** | **$3,705** | **$2,434** | - Traditional Banking's Provision increased due to **$3.9 million** in general formula reserves for loan growth and **$1.0 million** in qualitative factor reserves, partially offset by a **$2.0 million** release of COVID-related reserves[325](index=325&type=chunk) - TRS recorded a net credit to Provision in Q2 2023, compared to a net charge in Q2 2022, primarily related to its Refund Advance (RA) product[323](index=323&type=chunk) - The incurred loss rate for 2023 tax season RAs was **3.09%** of originations, up from **2.85%** in 2022[328](index=328&type=chunk) - RCS's Provision increased due to a **$638 thousand** increase in net charge-offs and a **$221 thousand** increase in general formula reserves for its LOC product, driven by increased origination volume for LOC II[330](index=330&type=chunk) Annualized Net Loan Charge-offs (Recoveries) to Average Loans (Three Months Ended June 30) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | Total Company | 2.37% | 1.00% | | Core Bank | 0.01% | —% | | Republic Processing Group | 18.73% | 10.46% | [Noninterest Income](index=118&type=section&id=Noninterest%20Income%20(Q2)) Total company noninterest income decreased by $10.9 million, or 35.72%, primarily due to a non-recurring legal settlement in Q2 2022 Noninterest Income (Three Months Ended June 30, in thousands) | Segment | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Total Company Noninterest Income | $19,651 | $30,569 | $(10,918) | | Traditional Banking | $10,330 | $7,734 | $2,596 | | Mortgage Banking | $907 | $1,763 | $(856) | | Tax Refund Solutions | $5,325 | $17,865 | $(12,540) | | Republic Credit Solutions | $3,051 | $3,149 | $(98) | - Traditional Banking's noninterest income increased by **$2.6 million**, primarily due to a **$1.7 million** death benefit payment from a Bank Owned Life Insurance (BOLI) policy[340](index=340&type=chunk) - Mortgage Banking income decreased by **$856 thousand** (**49%**) due to substantially higher long-term market interest rates, leading to a significant slowdown in mortgage loan originations and sales[342](index=342&type=chunk) - Tax Refund Solutions' noninterest income decreased by **$12.5 million**, primarily due to a **$13 million** legal settlement received in the second quarter of 2022 that did not recur in 2023[344](index=344&type=chunk) - Republic Credit Solutions' noninterest income decreased by **$98 thousand** (**3%**), reflecting lower sales volume from installment loans (due to a new credit model under testing) partially offset by higher sales volume from LOC II products[346](index=346&type=chunk)[347](index=347&type=chunk) [Noninterest Expense](index=119&type=section&id=Noninterest%20Expense%20(Q2)) Total company noninterest expense increased by $3.9 million, or 8.14%, driven by the CBank acquisition and higher legacy salaries and benefits Noninterest Expense (Three Months Ended June 30, in thousands) | Segment | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Total Company Noninterest Expense | $51,533 | $47,656 | $3,877 | | Traditional Banking | $42,153 | $38,317 | $3,836 | | Mortgage Banking | $2,322 | $2,832 | $(510) | | Republic Credit Solutions | $2,907 | $1,939 | $968 | - Traditional Banking noninterest expense increased by **$3.8 million**, driven by **$2.0 million** from the CBank acquisition, a **$1.2 million** increase in legacy salaries and benefits, higher interchange-related expenses, and increased FDIC insurance expense[350](index=350&type=chunk)[351](index=351&type=chunk)[428](index=428&type=chunk) - Mortgage Banking noninterest expense decreased by **$510 thousand** (**18%**), primarily due to a **$281 thousand** reduction in overhead salaries and a **$146 thousand** reduction in mortgage commissions, both resulting from the slowdown in mortgage origination volume[351](index=351&type=chunk) - Republic Credit Solutions noninterest expense increased by **$968 thousand** (**50%**), with approximately **$745 thousand** concentrated in the LOC II product due to increased marketing activity[352](index=352&type=chunk) [Results of Operations (H1 2023 vs. H1 2022)](index=121&type=section&id=Results%20of%20Operations%20(H1%202023%20vs.%20H1%202022)) Net income decreased by $3.6 million, or 6.7%, due to lower noninterest income from non-recurring payments and increased provision for credit losses [Overall Company Performance](index=121&type=section&id=Overall%20Company%20Performance%20(H1)) Total company net income decreased by $3.6 million, or 6.74%, for the six months ended June 30, 2023 Net Income and Diluted EPS (Six Months Ended June 30) | Metric | 2023 | 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Income (in thousands) | $49,144 | $52,697 | $(3,553) | (6.74)% | | Diluted EPS Class A Common Stock | $2.50 | $2.64 | $(0.14) | (5.30)% | - Traditional Banking net income increased by **$11.7 million** (**105%**), while Warehouse net income decreased by **$3.6 million** (**65%**)[353](index=353&type=chunk)[354](index=354&type=chunk) - Mortgage Banking income decreased by **$2.7 million** (**61%**), and Tax Refund Solutions net income decreased by **$10.1 million** (**37%**)[355](index=355&type=chunk)[359](index=359&type=chunk) - Republic Credit Solutions net income increased by **$200 thousand** (**2%**)[360](index=360&type=chunk) [Net Interest Income](index=123&type=section&id=Net%20Interest%20Income%20(H1)) Total company net interest income increased by $42.2 million, or 36.69%, with NIM expanding to 5.48% for H1 2023 Net Interest Income and Margin (Six Months Ended June 30) | Metric | 2023 (in thousands) | 2022 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Company Net Interest Income | $157,171 | $114,981 | $42,190 | 36.69% | | Total Company Net Interest Margin (NIM) | 5.48% | 3.94% | 1.54% | 39.09% | | Traditional Banking Net Interest Income | $98,789 | $75,306 | $23,483 | 31.18% | | Traditional Banking NIM | 3.92% | 2.98% | 0.94% | 31.54% | | Warehouse Net Interest Income | $4,729 | $8,401 | $(3,672) | (43.71)% | | Warehouse NIM | 2.39% | 2.89% | (0.50)% | (17.30)% | | TRS Net Interest Income | $35,775 | $17,042 | $18,733 | 109.92% | | RCS Net Interest Income | $17,756 | $13,875 | $3,881 | 27.97% | - Traditional Banking's net interest income increased by **$23.5 million** (**31%**), and NIM expanded by **94 basis points**, driven by loan growth (including CBank acquisition and correspondent lending) and higher investment yields[367](index=367&type=chunk)[368](index=368&type=chunk)[371](index=371&type=chunk)[372](index=372&type=chunk) - However, declining cash and noninterest-bearing deposits, coupled with rising FHLB borrowings and deposit costs, are expected to lead to future NIM compression[367](index=367&type=chunk)[368](index=368&type=chunk)[371](index=371&type=chunk)[372](index=372&type=chunk) - Warehouse net interest income decreased by **$3.7 million** (**44%**), and NIM compressed by **50 basis points**, primarily due to lower average outstanding balances (driven by reduced mortgage refinancing demand) and funding costs rising faster than yields[373](index=373&type=chunk)[374](index=374&type=chunk) - TRS net interest income increased by **$18.7 million**, driven by higher FTP crediting rates on prepaid card products and a **$17.0 million** increase in loan-related interest and fees from a **$426 million** increase in Refund Advance (RA) origination volume[377](index=377&type=chunk)[378](index=378&type=chunk)[379](index=379&type=chunk) - RCS net interest income increased by **$3.9 million** (**28%**), primarily due to a **$7.7 million** increase in LOC II loan fees, driven by steadily increasing origination volume since early 2022[381](index=381&type=chunk)[382](index=382&type=chunk) - While customer demand is not interest rate sensitive, rising FTP costs are expected to negatively impact segment financial results[383](index=383&type=chunk) [Provision for Expected Credit Loss Expense](index=132&type=section&id=Provision%20for%20expected%20credit%20loss%20expense%20(H1)) Total company provision for expected credit loss expense increased by $20.0 million, or 154.47%, for the six months ended June 30, 2023 Provision for Expected Credit Loss Expense (Six Months Ended June 30, in thousands) | Segment | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Traditional Banking | $4,844 | $466 | $4,378 | | Warehouse | $337 | $(635) | $972 | | Tax Refund Solutions | $27,724 | $13,100 | $14,624 | | Republic Credit Solutions | $6,135 | $4,828 | $1,307 | | **Total Company Provision** | **$32,905** | **$12,898** | **$20,007** | - Traditional Banking's Provision increased due to a **$2.7 million** charge for CBank non-PCD loans, **$6.9 million** for loan growth (including **$1.0 million** in qualitative factor reserves), partially offset by a **$2.7 million** release of COVID-related reserves[398](index=398&type=chunk) - TRS recorded a **$21.6 million** charge to Provision for Refund Advance (RA) loans, primarily due to a **$426 million** increase in RA origination volume from a new contract[400](index=400&type=chunk)[401](index=401&type=chunk) - The incurred loss rate for 2023 tax season RAs was **2.92%** of originations[401](index=401&type=chunk) - RCS's Provision increased due to a **$1.2 million** increase in net charge-offs and a **$620 thousand** Allowance build for its LOC II product, driven by increased origination volume[402](index=402&type=chunk) Annualized Net Loan Charge-offs (Recoveries) to Average Loans (Six Months Ended June 30) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | Total Company | 1.32% | 0.60% | | Core Bank | 0.01% | 0.01% | | Republic Processing Group | 21.68% | 19.16% | [Noninterest Income](index=137&type=section&id=Noninterest%20Income%20(H1)) Total company noninterest income decreased by $19.2 million, or 31.26%, primarily due to non-recurring payments in H1 2022 Noninterest Income (Six Months Ended June 30, in thousands) | Segment | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Total Company Noninterest Income | $42,332 | $61,578 | $(19,246) | | Traditional Banking | $17,984 | $14,976 | $3,008 | | Mortgage Banking | $1,751 | $4,500 | $(2,749) | | Tax Refund Solutions | $16,965 | $35,801 | $(18,836) | | Republic Credit Solutions | $5,610 | $6,276 | $(666) | - Traditional Banking's noninterest income increased by **$3.0 million** (**20%**), primarily due to a **$1.7 million** death benefit payment from a BOLI policy[412](index=412&type=chunk) - Mortgage Banking income decreased by **$2.7 million** (**61%**) due to substantially higher long-term market interest rates, leading to a significant slowdown in mortgage loan originations and sales[414](index=414&type=chunk) - Tax Refund Solutions' noninterest income decreased by **$18.8 million** (**53%**), primarily due to **$18 million** in nonrecurring payments received in the first six months of 2022 (a **$5.0 million** contract termination fee and a **$13.0 million** legal settlement) that did not recur in 2023[415](index=415&type=chunk) - Republic Credit Solutions' noninterest income decreased by **$666 thousand** (**11%**), reflecting lower sales volume and gains from installment loans (due to a new credit model under testing) partially offset by higher sales volume and gains from LOC II products[416](index=416&type=chunk)[417](index=417&type=chunk) [Noninterest Expense](index=138&type=section&id=Noninterest%20Expense%20(H1)) Total company noninterest expense increased by $7.7 million, or 8.04%, driven by the CBank acquisition and higher legacy salaries and benefits Noninterest Expense (Six Months Ended June 30, in thousands) | Segment | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Total Company Noninterest Expense | $103,976 | $96,237 | $7,739 | | Traditional Banking | $83,005 | $76,544 | $6,461 | | Mortgage Banking | $4,876 | $5,522 | $(646) | | Republic Credit Solutions | $5,328 | $3,506 | $1,822 | - Traditional Banking noninterest expense increased by **$6.5 million**, driven by **$4.4 million** from the CBank acquisition (including **$2.2 million** in non-recurring merger expenses) and a **$1.3 million** increase in legacy salaries and benefits[420](index=420&type=chunk) - Mortgage Banking noninterest expense decreased by **$646 thousand** (**12%**), primarily due to a **$304 thousand** reduction in overhead salaries and a **$149 thousand** reduction in mortgage commissions, both resulting from the slowdown in mortgage origination volume[423](index=423&type=chunk) - Republic Credit Solutions noninterest expense increased by **$1.8 million** (**52%**), with approximately **$867 thousand** concentrated in the LOC II product due to increased marketing activity and **$532 thousand** in salaries and benefits due to annual merit increases[425](index=425&type=chunk) [Comparison of Financial Condition (June 30, 2023 vs. Dec 31, 2022)](index=140&type=section&id=COMPARISON%20OF%20FINANCIAL%20CONDITION%20AS%20OF%20JUNE%2030%2C%202023%20AND%20DECEMBER%2031%2C%202022) Total assets and deposits increased, while cash decreased and FHLB advances rose significantly, with capital ratios exceeding regulatory requirements [Cash and Cash Equivalents](index=140&type=section&id=Cash%20and%20Cash%20Equivalents) Cash and cash equivalents decreased by $71.7 million, or 22.87%, primarily due to lower average deposits and increased loan balances | Metric (in thousands) | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $241,967 | $313,689 | $(71,722) | (22.87)% | - The decline in average interest-earning cash balances was generally driven by a decrease in average deposits and an increase in average loan balances[426](index=426&type=chunk) - Cash held at the Federal Reserve Bank earned a weighted-average yield of **4.82%** during the first six months of 2023, with a spot balance yield of **5.15%** on June 30, 2023[427](index=427&type=chunk) [Investment Securities](index=141&type=section&id=Investment%20Securities) The investment portfolio increased by $19 million, driven by purchases and the CBank merger, partially offset by calls and paydowns - Republic's investment portfolio increased by **$19 million** from December 31, 2022, to June 30, 2023[429](index=429&type=chunk) - This was driven by **$40 million** in portfolio purchases, **$16 million** from the CBank merger, and a **$20 million** increase in FHLB stock[429](index=429&type=chunk) - These increases were partially offset by portfolio declines of **$40 million** from calls and maturities of debt securities, **$18 million** in paydowns on mortgage-backed securities, and a **$1 million** increase in the portfolio market value[429](index=429&type=chunk) Purchases of Investment Securities (Six Months Ended June 30, 2023, in thousands) | Class | Purchase Cost | Yield to Maturity | Average Life | | :--- | :--- | :--- | :--- | | Corporate (CBank acquisition) | $2,017 | 6.05% | 2.60 yrs | | U.S. Government Agencies | $65,000 | 5.47% | 2.60 yrs | | Mortgage-backed securities - residential (CBank acquisition) | $14,442 | 4.56% | 9.10 yrs | | **Total Purchases** | **$81,459** | **5.32%** | **3.75 yrs** | [Loans](index=142&type=section&id=Loans) Total loans increased by $537 million, or 12%, primarily from Traditional Banking and Warehouse segments, partially offset by RPG loan paydowns Gross Loan Portfolio Composition (in thousands) | Segment | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Traditional Banking | $4,394,668 | $3,855,142 | $539,526 | 14% | | Warehouse lines of credit | $539,560 | $403,560 | $136,000 | 34% | | Republic Processing Group | $118,914 | $257,100 | $(138,186) | (54)% | | **Total Loans** | **$5,053,142** | **$4,515,802** | **$537,340** | **12%** | - Traditional Banking loans increased by **$540 million** (**14%**), driven by **$216 million** from the CBank acquisition, **$54 million** in legacy Commercial Real Estate (CRE), **$89 million** in residential real estate, and **$96 million** from Correspondent Lending[432](index=432&type=chunk)[433](index=433&type=chunk)[434](index=434&type=chunk) - Warehouse outstanding balances increased by **$136 million**, but future balances are difficult to project due to mortgage market volatility[435](index=435&type=chunk) - Tax Refund Solutions (TRS) loans decreased by **$98 million**, primarily due to paydowns of Early Season Refund Advances (ERAs)[437](index=437&type=chunk) [Allowance for Credit Losses](index=144&type=section&id=Allowance%20for%20Credit%20Losses) Total ACLL increased by $1.8 million, or 2.54%, to $72.2 million, with Traditional Banking ACLL rising and TRS ACLL decreasing to $0 Allowance for Credit Losses (ACLL) (in thousands) | Metric | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Company ACLL | $72,202 | $70,413 | $1,789 | 2.54% | | ACLL to Total Loans | 1.43% | 1.56% | (0.13)% | (8.33)% | | Traditional Banking ACLL | $55,567 | $50,709 | $4,858 | 9.58% | | Warehouse ACLL | $1,346 | $1,009 | $337 | 33.40% | | Tax Refund Solutions ACLL | $0 | $3,797 | $(3,797) | (100.00)% | | Republic Credit Solutions ACLL | $15,289 | $14,807 | $482 | 3.26% | - Traditional Banking ACLL increased by approximately **$324 thousand**, driven by formula reserves tied to loan growth, partially offset by a **$1.5 million** release of COVID-related reserves[439](index=439&type=chunk) - Tax Refund Solutions ACLL decreased by **$4 million** to **$0**, primarily due to the charge-off of all unpaid Early Season Refund Advances (ERAs) originated in December 2022[441](index=441&type=chunk) - Republic Credit Solutions ACLL increased by **$482 thousand**, driven by an increase in the LOC II spot balance and a change in the loan mix[442](index=442&type=chunk) [Asset Quality](index=147&type=section&id=Asset%20Quality) Asset quality metrics remained stable, with a decrease in total classified and special mention loans and a slight increase in nonperforming loans [Classified and Special Mention Loans](index=147&type=section&id=Classified%20and%20Special%20Mention%20Loans) Total Classified and Special Mention loans decreased by $8.6 million, or 9.68%, primarily due to commercial loan repayments or upgrades Classified and Special Mention Loans (in thousands) | Category | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Classified Loans | $18,623 | $18,508 | $115 | 0.62% | | Total Special Mention Loans | $61,287 | $69,964 | $(8,677) | (12.40)% | | **Total Classified and Special Mention Loans** | **$79,910** | **$88,472** | **$(8,562)** | **(9.68)%** | - The Bank's Classified and Special Mention loans decreased by approximately **$9 million** during the first six months of 2023, primarily due to commercial-purpose loans being repaid or upgraded to a Pass rating[445](index=445&type=chunk) [Nonperforming Loans](index=147&type=section&id=Nonperforming%20Loans) Total nonperforming loans increased by $1.2 million, or 7.27%, to $17.5 million, while the ratio to total loans slightly decreased Nonperforming Loans and Assets Summary (in thousands) | Metric | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Nonperforming Loans | $17,504 | $16,318 | $1,186 | 7.27% | | Nonperforming loans to total loans | 0.35% | 0.36% | (0.01)% | (2.78)% | | ACLL to nonaccrual loans | 426% | 452% | (26)% | (5.75)% | - The increase in nonperforming loans was primarily driven by the refinancing of **$8 million** of these loans to another financial institution[450](index=450&type=chunk) Roll-forward of Nonperforming Loans (Six Months Ended June 30, in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Nonperforming loans at beginning of period | $16,318 | $20,552 | | Loans added to nonperforming status | $5,267 | $2,324 | | Loans removed from nonperforming status | $(3,193) | $(5,633) | | Nonperforming loans at end of period | $17,504 | $16,210 | [Delinquent Loans](index=150&type=section&id=Delinquent%20Loans) Total delinquent loans increased by $658 thousand, or 4.31%, to $15.9 million, while the delinquency ratio to total loans slightly decreased Delinquent Loan Composition (in thousands) | Metric | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Delinquent Loans | $15,918 | $15,260 | $658 | 4.31% | | Total Company delinquent loans to total loans | 0.32% | 0.34% | (0.02)% | (5.88)% | | Core Bank delinquent loans to total Core Bank loans | 0.12% | 0.14% | (0.02)% | (14.29)% | Roll-forward of Delinquent Loans (Six Months Ended June 30, in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Delinquent loans at beginning of period | $15,260 | $13,465 | | Loans added to delinquency status | $4,588 | $2,348 | | Loans removed from delinquency status | $(4,684) | $(4,104) | | Delinquent loans at end of period | $15,918 | $11,451 | [Collateral-Dependent Loans and Loan Modifications](index=152&type=section&id=Collateral-Dependent%20Loans%20and%20Loan%20Modifications) Collateral-dependent loan modifications totaled $1.3 million as of June 30, 2023, following the adoption of ASU 2022-02 - As of June 30, 2023, there were **$1.3 million** in collateral-dependent loan modifications, following the adoption of ASU 2022-02, which now recognizes all loan modifications as collateral-dependent[465](index=465&type=chunk) Collateral-Dependent Loans and Troubled Debt Restructurings (December 31, 2022, in thousands) | Category | Balance | | :--- | :--- | | Cashflow-dependent TDRs | $5,761 | | Collateral-dependent TDRs | $6,265 | | Total TDRs | $12,026 | | Collateral-dependent loans (not TDRs) | $14,186 | | **Total recorded investment in TDRs and collateral-dependent loans** | **$26,212** | [Deposits](index=153&type=section&id=Deposits) Total deposits increased by $191 million, or 4%, driven by the CBank acquisition and growth in interest-bearing deposits, despite noninterest-bearing declines Deposit Composition (in thousands) | Segment/Type | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Deposits | $4,729,281 | $4,537,845 | $191,436 | 4% | | Core Bank Deposits | $4,269,758 | $4,089,721 | $180,037 | 4% | | Core Bank Noninterest-bearing | $1,405,543 | $1,464,493 | $(58,950) | (4)% | | Core Bank Interest-bearing | $2,864,215 | $2,625,228 | $238,987 | 9% | | RPG Deposits | $459,523 | $448,124 | $11,399 | 3% | - Core Bank legacy noninterest-bearing deposits decreased by **$110 million** due to a general decline in liquidity and customers seeking higher market interest rates[468](index=468&type=chunk) - This was partially offset by a **$99 million** increase in Core Bank legacy interest-bearing deposits, primarily in CDARs and ICS products, driven by higher offering rates[469](index=469&type=chunk) - Management expects the higher offering rates for interest-bearing deposits to continue raising the Traditional Bank's cost of funds and cause further net interest margin contraction in the second half of 2023[471](index=471&type=chunk) [Securities Sold Under Agreements to Repurchase and Other Short-term Borrowings](index=155&type=section&id=Securities%20Sold%20Under%20Agreements%20to%20Repurchase%20and%20Other%20Short-term%20Borrowings) SSUARs decreased by $125 million, or 57.55%, due to large customer relationships and the Bank's unchanged pricing strategy | Metric (in thousands) | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | SSUARs outstanding balance | $92,093 | $216,956 | $(124,863) | (57.55)% | - SSUARs decreased by **$125 million** (**58%**) due to large customer relationships and the Bank's unchanged pricing strategy, which has not been adjusted to match higher market rates[473](index=473&type=chunk) - A further decline in outstanding balances is possible if the pricing strategy remains unchanged[474](index=474&type=chunk) [Federal Home Loan Bank Advances](index=155&type=section&id=Federal%20Home%20Loan%20Bank%20Advances) Total FHLB advances significantly increased by $425 million, or 447.37%, to $520 million, used to fund deposit outflows and loan growth | Metric (in thousands) | June 30, 2023 | December 31, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total FHLB advances | $520,000 | $95,000 | $425,000 | 447.37% | | Weighted-average maturity | 0.68 years | N/A | N/A | N/A | | Weighted-average cost | 4.88% | N/A | N/A | N/A | - The Company has utilized FHLB advances to fund its deposit outflow and overall loan growth[475](index=475&type=chunk) - During Q2 2023, **$50 million** of borrowings were extended to longer maturities due to the inverted yield curve and more attractive costs[475](index=475&type=chunk) [Liquidity](index=157&type=section&id=Liquidity) Total liquid assets and available borrowing capacity decreased by $350.9 million, with the loan to deposit ratio increasing to 107% Liquid Assets and Borrowing Capacity (in thousands) | Metric | June 30, 2023 | December 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $241,967 | $313,689 | $(71,722) | | Unencumbered debt securities | $515,603 | $438,052 | $77,551 | | **Total Liquid Assets** | **$757,570** | **$751,741** | **$5,829** | | Available borrowing capacity with the FHLB | $542,656 | $899,362 | $(356,706) | | Available borrowing capacity through unsecured credit lines | $125,000 | $125,000 | $0 | | **Total Available Borrowing Capacity** | **$667,656** | **$1,024,362** | **$(356,706)** | | **Total Liquid Assets and Available Borrowing Capacity** | **$1,425,226** | **$1,776,103** | **$(350,877)** | - The loan to deposit ratio (excluding wholesale brokered deposits) increased to **107%** as of June 30, 2023, from **99%** at December 31, 2022[481](index=481&type=chunk) - Total uninsured deposits were **$1.7 billion**, representing **36%** of total deposits as of June 30, 2023[483](index=483&type=chunk) - The **20 largest** non-sweep deposit relationships accounted for approximately **$233 million** (**5%**) of total deposits[483](index=483&type=chunk) - In Q2 2023, the Bank began marketing deposit products with higher offering rates to combat deposit outflow, which generally reversed the outflow in late May and June[482](index=482&type=chunk) - However, management is uncertain if these rates will prevent future outflows or if further increases will be needed, potentially impacting earnings[482](index=482&type=chunk) [Capital](index=159&type=section&id=Capital) Total stockholders' equity increased to $887 million, and the company and Bank continue to exceed regulatory 'well-capitalized' requirements - Total stockholders' equity increased from **$857 million** at December 31, 2022, to **$887 million** at June 30, 2023, primarily due to net income, reduced by cash dividends[486](index=486&type=chunk) - The Company and the Bank continue to exceed regulatory 'well-capitalized' requirements, including the Capital Conservation Buffer[488](index=488&type=chunk)[490](index=490&type=chunk)[491](index=491&type=chunk) - As of July 1, 2023, RB&T could declare approximately **$116 million** in dividends without prior regulatory approval[488](index=488&type=chunk)[490](index=490&type=chunk)[491](index=491&type=chunk) Capital Ratios (June 30, 2023) | Metric | Republic Bancorp, Inc. Ratio | Republic Bank & Trust Company Ratio | | :--- | :--- | :--- | | Total capital to risk-weighted assets | 16.39% | 15.69% | | Common equity tier 1 capital to risk-weighted assets | 15.20% | 14.50% | | Tier 1 (core) capital to risk-weighted assets | 15.20% | 14.50% | | Tier 1 leverage capital to average assets | 14.36% | 13.49% | [Asset/Liability Management and Market Risk](index=160&type=section&id

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023 or ◻ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 0-24649 REPUBLIC BANCORP, INC. (Exact name of registrant as specified in its charter) Kentucky 61-0862051 (State or other jurisdiction of incorporation or org ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 Commission File Number: 0-24649 REPUBLIC BANCORP, INC. (Exact name of registrant as specified in its charter) incorporation or organization) Kentucky 61-0862051 (State or other jurisdiction of (I.R.S. Employer Identification No.) 601 West Market Street, Louisville, Kentucky 40202 (A ...